Summary of Incentives and Subsidies for Renewable Energy Products by MNRE

Incentives and Subsidies for Renewable Energy Products by MNREIndia’s energy demand has been growing rapidly as a result of the industrial growth as well as the rise in household energy consumption. India ranks 6th in the world in terms of energy demand accounting for 3.5% of the total world commercial energy demand in 2001 (Planning Commission of India). Most of the energy requirements in India are being fulfilled by fossil fuels that further increase our dependency on imports. To overcome the issue of energy security, Government of India is supporting increasing involvement of renewable energy sources in the total energy mix.

As per the latest announcement, there are a number of financial incentives and subsidies by the Ministry of New & Renewable Energy (MNRE). These incentives and subsidies are applicable for a number of renewable energy products available in the market.

Details of the products with their average cost and subsidies are given below:

Sr. No.Name of the ProductCost Range(in Rs.)MNRE Subsidy(in Rs.)
 1Solar Water Heating Systems (2 Sq. Meters)

13,000 – 20,000

 6000 – 6600
 2Solar Cookers
a)Box Type Solar  Cooker
b)Dish Type Solar Cooker
c)Scheffler Dish  Cooker
a)3,500 to 4,200
b)6,500 to 8,000
c)15,000 to 20,000 
30% of the product cost   (Maximum).In Special Category States

60% of the product cost (Maximum)

 

 

 

 

 

 3Solar Home Lighting Systems11,000 – 15,000
 4Solar Street Lighting Systems17,000 – 22,000
 5Solar Lanterns1700 – 3000
 6Solar Pumps

1,70,000 / kW

 7Family Type Biogas Plants (2 Cubic m)

20,000 to 25,000

8,000 to 14,700 (depending upon location)
 8Small Wind Turbines for off-grid applications

2,00,000 / kW

Up to 120,000 /kW
 9Water Mills

70,000 – 80,000

35,000

 

Source: MNRE, Press Information Bureau

About Auther:

Shailesh is post graduate in Environment Management from Forest Research Institute (FRI) University, Dehradun, India. Presently he is working in the areas of Environmental and Renewable Energy Advisory Services. He has started GreenCleanGuide.com during his college days.

34 thoughts on “Summary of Incentives and Subsidies for Renewable Energy Products by MNRE

  1. Dear Shailesh,

    I reside in Bhopal (MP) and have installed 5kwh solar power unit by my own means on the roof of my house for use of show room and domestic consumption. Whether I can get subsidy and how it an be claimed and from whom ? What other benefits are available to me.If power surplus remains with me, at what price and how I can sell it to MPEB. And what more benefits are available to me.Will you please elucidate. Thanks.

    J.P. Madvaiya

  2. WE ARE PLANNING TO INSTALL SOLAR PUMPSET FOR COVERING 10 ACRE AGRICULTURE LAND CAN YOU PL SUGGEST TO WHOM WE SHOULD APPROACH TO GET SUBSIDY AND OTHER INITIATIVES TO BE TAKEN. WE RESIDE IN A VILLAGE CALLED ALAMANDA IN VIZIANAGARAM DISTRICT – ANDHRA PRADESH

    KSSN REDDY

  3. Hi I would like to know the subsidies and insentives to set up a biomass fuel pellet unit in Karnataka. Cost of project 1,00,000,00.

  4. Dear Shailesh,

    I am taking dealer ship of wind turbines for Andhra Pradesh… and i want present subsidy for those people who purchase these products… will you give the details for that..
    thank you

  5. Hi Shailesh,
    I have made my own solar panels from solar cells I got from china.
    Current capacity is 400 W. I plan to add 1600W more. This is for my farm at Karjat, Maharashtra,
    How can I claim subsidy if I have not bought the system from MNRE channel partners. Is there a way.
    Thanks
    Vinod

    1. Thanks Shailesh for the info.
      Anyway it still worked out cheaper than buying from MNRE partners even after claiming subsidy.
      I made 4 140W panels each with 36 nos. X (6″x6″ A grade monocrystalline cells-4 watts each) and it cost me totally around 45 K along with alumunium channel frames and toughened glass.
      Only thing is that it was very labour intensive. Soldering and fixing took 1 full day for each panel.

      Vinod

  6. Dear sir,
    Its a pleasure to know about the subsidy and their details through the above comments,
    and i like to know about ” carbon revenue ” of the individual solar power plant. Where as most of the carbon emission takes place from the burning of fossil fuels..and the SPV Power plants are helpful in reducing it. So, how far we are to getting carbon emission suppression and it would be an added subsidy or like savings towards helping the more individual to take intiative.

    By,
    Vishak J.

  7. SIR

    1)can you please tell me that what is the subsidy plan in himachal pradesh for home use solar (like solar streat light,solar water heater etc)
    2) and also mention the indian government plan on subsidies for above mentioned solar system.
    thanks

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